A recent report from Moody’s Ratings has revealed that private credit fundraising and deployment across Asia-Pacific are expected to slow over the next 12 to 18 months, as macroeconomic uncertainty, geopolitical tensions and elevated interest rates continue to dampen investor demand for illiquid assets.
Moody’s analyst Sean Hung said in a report that recent redemption requests across the global private credit market have intensified scrutiny of liquidity terms and could further curb new inflows into the APAC region, particularly from retail and wealth management channels, Bloomberg reported.
Withdrawal requests primarily driven by wealthy retail clients in private credit have continued into the second quarter, with no signs of letting up. Despite this, Moody’s Ratings expects the underlying demand for private credit in Asia-Pacific to stay resilient, supported by continued economic growth and the ongoing retreat of banks from higher-risk, capital-intensive lending activities.
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